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CTP · Question #697

CTP Question #697: Real Exam Question with Answer & Explanation

The correct answer is B. Captive finance company. See the full explanation below for the reasoning.

Question

  • (Topic 7) Which method of financing would a company use to establish a wholly owned subsidiary to perform credit operations and obtain accounts receivable financing for the sale of products?

Options

  • AThird party financing
  • BCaptive finance company
  • CFactoring department
  • DSecuritization

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